The Greater Toronto Area housing market hit a notable milestone in July 2025, recording the strongest home sales for the month since 2021. According to the Toronto Regional Real Estate Board (TRREB), 6,100 properties changed hands, marking a 10.9% year-over-year increase. This ultimately highlights the overall growing confidence among buyers returning to the market. While new listings also rose 5.7% annually to reach 17,613, active listings totaled 30,215, which is a 26.2% increase from last year.
In July 2025, the average selling price dropped to $1,051,719, a 5.5% decline from the previous year. That $61,397 difference is just $8,000 short of the annual take-home pay of someone earning a six-figure salary in Ontario, highlighting just how significant the year-over-year price correction has been.
“Improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales,” said TRREB President Elechia Barry-Sproule. “More relief is required, particularly where borrowing costs are concerned, but it’s clear that a growing number of households are finding affordable options for homeownership.”
Homes Sit Longer as GTA Transitions Toward a Balanced Market
With affordability metrics slowly shifting in buyers’ favor and momentum building month-over-month, July’s performance reinforces the sense of cautious optimism emerging in the GTA market heading into the second half of 2025.
In July 2025, there were 2,205 sales in the City of Toronto, with an average Listing Days on Market (LDOM) of 31 days, meaning a 29% increase, meanwhile, and a Property Days on Market (PDOM) of 35, a decrease of 5.4% compared to last year.
Take a closer look at how listings, sales, and inventory changed month-over-month in other GTA markets.
City of Toronto: Balanced Market
A balanced market offers more choices for buyers without the intense competition of bidding wars, but sellers can still expect steady interest.
- New Listings: 6,008 (-14.8% m-o-m)
- Sales: 2,205 (-4.9% m-o-m)
- Active Listings: 10,993 (-6.3% m-o-m)
- Months of Inventory: 4.7 (+2.2% m-o-m)
Peel Region: Balanced Market
Conditions are neutral: homes are selling steadily, and buyers have negotiating room.
- New Listings: 3,535 (-9.22% m-o-m)
- Sales: 1,052 (-2.50% m-o-m)
- Active Listings: 5,923 (-2.20% m-o-m)
- Months of Inventory: 4.8 (+2.13% m-o-m)
York Region: Balanced Market
Supply and demand are in equilibrium, offering fair conditions for both buyers and sellers.
- New Listings: 3,400 (-3.85% m-o-m)
- Sales: 1,061 (-1.13% m-o-m)
- Active Listings: 5,874 (-1.41%)
- Months of Inventory: 4.9 (+2.08% m-o-m)
Halton Region: Balanced Market
Still considered balanced, but leaning slightly toward seller-friendly territory with quicker sales.
- New Listings: 1,810 (-18.91% m-o-m)
- Sales: 715 (-5.05% m-o-m)
- Active Listings: 3,207 (-6.34 m-o-m)
- Months of Inventory: 4.1 ( 0% m-o-m)
Durham Region: Seller’s Market
High demand and low inventory mean homes sell faster and with more competition.
- New Listings: 2,058 (-9.82% m-o-m)
- Sales: 852 (+4.28% m-o-m)
- Active Listings: 2,813 (-3.83% m-o-m)
- Months of Inventory: 3.0 (-3.33% m-o-m)
More Affordable Opportunities Emerge in July’s Housing Market
Affordability showed signs of improvement in July 2025, with price softening across several property types, creating more opportunities for a range of buyers, including those looking to enter the market or move up.
Condo apartments led the market in sales, with 1,576 units sold across the GTA, a 5.8% increase year-over-year. In Toronto, 1,028 condo units changed hands, offering buyers a wide selection of urban options. But softening prices are still noteworthy: the average condo price in the 416 dropped 8.6% to $684,257, while in the 905, prices fell 10.3% to $590,004. With the GTA-wide average at $651,483, buyers are now seeing more entry-level inventory well under the average, an encouraging sign for those previously priced out of the market.
Townhouses and semi-detached homes also became more accessible. Townhouse prices dropped 7.4% year-over-year to an average of $849,380, with more substantial declines in the 905 area (down 8.1%), where the average sits at $829,332. Even in the 416, the average price slipped to $920,197, creating new opportunities for growing families seeking space without stretching their budgets.
- Read More: Canada’s Hottest Condo Market of the Last Decade Might Surprise You (It’s Not Toronto or Vancouver)
Semi-Detached Homes Offer Stability and Space
Meanwhile, semi-detached home prices remained relatively steady, even as sales surged by 25.5%. The average price across the GTA dipped just 2.3% to $1,041,359, with the 905 region falling below the million-dollar threshold at $894,094. This modest price movement, combined with growing inventory, signals a more balanced segment of the market. For buyers looking to trade up from a condo or secure more space without taking on the full cost of a detached home, semi-detached properties are emerging as an attractive middle ground, offering both value and versatility in a shifting market.
Detached Homes Dominate July Sales
Detached homes, while still commanding higher price points, also became more attainable. The average GTA detached home price fell 5.1% to $1,361,660, with larger drops in both the 416 (-4.6%) and the 905 (-5.4%). With sales up 11.3%, this signals that price adjustments may finally be bringing detached homes into range for more buyers.
Detached homes remained the most active segment in the GTA housing market in July 2025, with 2,795 transactions, accounting for 45.8% of all sales. The busiest price bracket was $1 million to $1.25 million, with 670 sales, followed by 476 sales in the $1.25 million to $1.5 million range and 328 homes trading hands in the $900,000 to $999,999 range.
Mirror Sales, Mismatched Markets
Across all home types in the GTA, Peel and York regions saw nearly identical sales volumes, with 1,052 and 1,049 homes sold, respectively. However, home prices in York were significantly higher, averaging $1,234,564 compared to $972,669 in Peel — a difference of approximately 26.9%.
Tracking the Signs of a Tightening GTA Housing Market
July’s market conditions suggest a tightening trend, with sales growth outpacing the rise in new listings. This shift signals a more competitive environment than last year. While lower prices have improved affordability and attracted more buyers, the fact that inventory is being absorbed faster than it’s being replenished suggests rising demand relative to supply.
If this trend continues in high-demand segments, competition could intensify and potentially push prices upward.
For now, buyers still have the advantage, but the window of opportunity may shrink if supply can’t keep pace with renewed demand. If this trajectory holds, sellers could see improving conditions as we head into the fall market.
What the Foreign Buyer Ban Does and Doesn’t Cover (and Why It Matters Now)
As noted in this month’s report, foreign nationals still play a role in Canada’s housing market through permitted investments that support the broader economy. Though Canada’s foreign buyer ban has been extended to January 2027, it is not an outright prohibition. Instead, it includes key exemptions.
“Despite widespread belief that the federal foreign buyer ban prohibits all foreign nationals from purchasing residential properties in Canada, there are exemptions that allow non-residents to buy property, resulting in spin-off benefits to the economy. Foreign buyers can purchase multi-unit buildings with four or more units and vacant land or land for development. Non-residents can also buy other residential properties outside urban centres, including recreational properties,” said TRREB CEO John DiMichele.
“Moreover, temporary workers and international students can purchase residential property under defined circumstances under the ban,” DiMichele explained.
For instance, a temporary worker with a valid permit and over six months remaining may still qualify to buy, provided they haven’t already purchased a home during the ban. Similarly, an international student who has lived in Canada most of the year, filed taxes, and is purchasing a home under $500,000 may also be eligible.
These exemptions help absorb excess inventory and support the housing and development sectors, even as the broader restrictions remain in place.
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